Which of the following is classified as an asset?

Receivables are indeed classified as assets because they represent amounts that are owed to a business from customers or other debtors. This means that the company has a right to receive cash or other financial benefits in the future, making it an economic resource that can provide future economic benefits.

When a company extends credit to its customers, the amounts owed to it for goods or services delivered but not yet paid for are recorded as accounts receivable. This classification is vital in accounting, as it helps in assessing a company’s liquidity and ability to convert receivables into cash. In contrast, payables are obligations or debts the company owes, unearned revenue is a liability reflecting payments received before services are provided, and revenue signifies earnings generated from normal business operations, rather than resources owned by the company.